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Footwear Wholesaling in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Apr 20, 2014, 11:00 ET

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Cheap imports and offshore manufacturing will intensify price competition.

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New York, NY (PRWEB) April 20, 2014 -- The Footwear Wholesaling industry has finally managed to recover from recessionary losses and has slowly returned to its normal growth pattern. IBISWorld expects that over the five years to 2014, industry revenue will increase at an annualized rate of 1.6% to $30.6 billion, despite an expected decrease of 0.8% in 2014. According to IBISWorld Industry Analyst Zeeshan Haider, “While this amount remains below prerecession levels, higher revenue has encouraged industry operators and, consequently, it is expected that new footwear wholesalers will join this industry.”

While revenue declined by 9.5% in 2009, unemployment has since lessened, and a strengthening dollar, an increase in per capita disposable income and higher shoe prices have helped preserve profit margins for industry operators, fueling revenue growth in this industry. In addition, consumer confidence in the economy has been increasing at an annualized rate of 12.2% over the past five years. This increase has been fueled by robust performance of capital markets and an increase in per capita income, which has boosted spending on consumer goods, including shoes. This has resulted in an increase in downstream demand for the goods provided by this industry, which has helped footwear wholesalers in the United States pull themselves out of recession. Revenue and profit growth has also encouraged new wholesalers, especially nonemployers, to set up shop. IBISWorld expects that this will enhance the number of industry operators at an annualized rate of 1.3% to total 4,059 wholesalers.

IBISWorld expects little movement in this industry unless certain changes take hold over the next five years. First, the possible implementation of the Berry Amendment in the footwear industry, which requires the Department of Defense procure 100.0% US manufactured items, must occur. Second, the potential implementation of the Trans Pacific Agreement, which is a free trade agreement between the United States and some countries in South America and the Asia Pacific region, would significantly alter the industry's landscape. “If these agreements are codified during the next five years, they could change the outlook for this industry,” says Haider. However, according to current trends, IBISWorld expects industry revenue to grow over the five years to 2019.

Industry concentration measures the extent to which major players dominate an industry. The Footwear Wholesaling industry has a low level of concentration, as it has a fragmented market that has a mix of small and large participants. Market share concentration has increased over the past five years. The highly competitive nature of this industry will continue to place pressure on participants to close operations or merge to maintain profitability. Even wholesaling customers like large, well-established department stores are subject to mergers, acquisitions and bankruptcy putting further pressures on wholesalers to consolidate.

For more information, visit IBISWorld’s Footwear Wholesaling in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics

Operators in the Footwear Wholesaling industry wholesale footwear (including athletic shoes) made of leather, rubber and other materials. Businesses in this industry purchase shoes from manufacturers, and resell them to retailers with minimal or no further development or processing. Most wholesalers in this industry undertake sales and administrative activities, such as establishing relationships with manufacturers and retailers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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